(Download PDF) Marketing Research An Applied Orientation 6th Edition Malhotra Solutions Manual Full Chapter
(Download PDF) Marketing Research An Applied Orientation 6th Edition Malhotra Solutions Manual Full Chapter
(Download PDF) Marketing Research An Applied Orientation 6th Edition Malhotra Solutions Manual Full Chapter
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Essentials of Marketing Research A Hands-On Orientation
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CHAPTER 7
Figures
Figure 7.1 A Classification of Experimental Designs
Figure 7.2 A Concept Map for Experiments
Tables
Table 7.1 Evidence of Concomitant Variation Between Purchase of Fashion
Clothing and Education
Table 7.2 Purchase of Fashion Clothing by Income and Education
Table 7.3 Sources of Invalidity of Experimental Designs
Table 7.4 An Example of a Randomized Block Design
Table 7.5 An Example of Latin Square Design
Table 7.6 An Example of a Factorial Design
Table 7.7 Laboratory Versus Field Experiments
CHAPTER OBJECTIVES
1. Explain the concept of causality as defined in marketing research and distinguish between
the ordinary meaning and the scientific meaning of causality.
2. Define and differentiate the two types of validity: internal validity and external validity.
3. Discuss the various extraneous variables that can affect the validity of results obtained
through experimentation and explain how the researcher can control extraneous variables.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
1
4. Describe and evaluate experimental designs and the differences among preexperimental,
true experimental, quasi-experimental, and statistical designs.
5. Compare and contrast the use of laboratory versus field experimentation and
experimental versus nonexperimental designs in marketing research.
6. Describe test marketing and its various forms: standard test market, controlled test
market, and simulated test market.
7. Understand why the internal and external validity of field experiments conducted
overseas is generally lower than in the United States.
8. Describe the ethical issues involved in conducting causal research and the role of
debriefing in addressing some of these issues.
This chapter provides an overview of causal research and experimentation. The concept of
causality and the conditions for causality are described. Internal and external validity in
experimentation are discussed in detail. A classification of experimental designs is presented and
preexperimental, true experimental, quasi-experimental, and statistical designs are described.
Comparisons between laboratory versus field experiments, and experimental versus
nonexperimental designs are made. Test marketing is presented as an application of experimental
designs.
This chapter covers the material on causal research contained in competing texts. Yet, the
treatment of experimentation is more extensive than that found in competing texts.
This chapter could be taught by focusing on the chapter objectives sequentially. Discuss the
concept of causality (Chapter Objective 1), internal and external validity (Chapter Objectives 2
and 3), preexperimental and true experimental designs (Chapter Objective 4), and experimental
versus nonexperimental designs (Chapter Objective 5). Quasi-experimental designs and
statistical designs may not be covered in detail. Test marketing could be discussed in detail
(Chapter Objective 6). The material on conducting experiments internationally (Chapter
Objective 7), ethical issues (Chapter Objective 8), and the Internet and computers could also be
covered. The concept map can be used to effectively and efficiently summarize experiments
(Figure 7.2).
1. Objectives
2. Overview
3. Concept of Causality
4. Conditions for Causality
(i) Concomitant Variation
(ii) Time Order of Occurrence of Variables
(iii) Absence of Other Possible Causal Factors
(iv) Role of Evidence
5. Definitions and Concepts
(i) Independent Variables
(ii) Test Units
(iii) Dependent Variables
(iv) Extraneous Variables
(v) Experiment
(vi) Experimental Design
6. Definition of Symbols
7. Validity in Experimentation
(i) Internal Validity
(ii) External Validity
8. Extraneous Variables
(i) History
(ii) Maturation
(iii) Testing Effects
(iv) Instrumentation
(v) Statistical Regression
(vi) Selection Bias
(vii) Mortality
9. Controlling Extraneous Variables
(i) Randomization
(ii) Matching
(iii) Statistical Control
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(iv) Design Control
10. A Classification of Experimental Designs
11. Preexperimental Designs
(i) One-Shot Case Study
(ii) One-Group Pretest-Posttest Design
(iii) Static Group Design
12. True Experimental Designs
(i) Pretest-Posttest Control Group design
(ii) Posttest-Only Control Group Design
13. Quasi-Experimental Designs
(i) Time Series Design
(ii) Multiple Time Series Design
14. Statistical Designs
(i) Randomized Block Design
(ii) Latin Square Design
(iii) Factorial Design
15. Laboratory versus Field Experiments
16. Experimental versus Nonexperimental Designs
17. Limitations of Experimentation
(i) Time
(ii) Cost
(iii) Administration
18. Application: Test Marketing
(i) Standard Test Market
(ii) Controlled Test Market
(iii) Simulated Test Market
19. International Marketing Research
20. Ethics in Marketing Research
21. Summary
22. Key Terms and Concepts
23. Suggested Cases, Video Cases, and HBS Cases
24. Live Research: Conducting a Marketing Research Project
25. Acronyms
26. Exercises
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27. Internet and Computer Exercises
28. Activities
TEACHING SUGGESTIONS
Chapter Objective 1
● Discuss the concept of causality as used in marketing.
You may want to begin the class by asking a few students what the term ‘causality’
means and writing components of their definitions on the board.
Afterwards, be sure to stress to the students that marketing effects are caused by multiple
variables and the relationships tend to be probabilistic. As such, it is not possible to
conclusively prove causality. Thus, we can only infer a cause-effect relationship between
the variables.
▪ See Table 7.1 and Table 7.2 for examples of concomitant variation.
Thus, the first example in the text, X O1 O2, indicates a treatment was given to a
sample and measurements at two different points in time were made.
▪ See Question 1.
Chapter Objective 2
● Define validity and describe the difference between internal and external validity.
Because of the conceptual difficulty in understanding validity, some examples that depict
a research design lacking one of the two types of validity would be instructive. For
example, if we hypothesize that selling through national chains will increase profits, we
must hold all other causes of increased profits constant in order to conclude internal
validity. External validity can be seen in a study that randomly selects stores from all
markets in which a national chain operates. Assuming that the study takes into account all
realistic factors, any findings that hold for all these markets will generalize to all stores in
the national chain.
▪ See Question 2.
Chapter Objective 3
● List some of the extraneous variables that affect validity.
Chapter Objective 4
● Discuss the differences in the types of experimental designs.
Figure 7.1 can be used here to organize your discussion on experimental designs.
Note that preexperimental designs include the one-shot case study, the one-group pretest-
posttest design, and the static group design. Stress that the salient feature of these designs
is that they do not employ randomization procedures to control for extraneous factors.
For example, in the one-group pretest-posttest design, an observation on attitudes toward
the brand is taken before and after watching a commercial, but randomization is not used
in selecting observers, thus, the results cannot be extended to the population as a whole.
● List the significant features of a true experimental design and provide examples.
It will prove instructive to use a running example in explaining these designs. A standard
example is to use advertising research in the measurement of consumer attitudes toward a
commercial or the brand being advertised.
Advantages:
1. The effects of more than one independent variable can be measured.
2. Specific extraneous variables can be statistically controlled.
3. Economical designs can be formulated when each test unit is measured more than
once.
Examples of a randomized block design, Latin Square design, and Factorial design can be
constructed for demonstration purposes.
▪ See Table 7.4, Table 7.5, and Table 7.6
Chapter Objective 5
● Start a class discussion on whether laboratory or field experiments are more useful in
marketing research.
Begin this discussion by simply asking students which form of experimentation is better.
You may want to note that laboratory experiments make up the bulk of consumer
research because of their ability to control extraneous variables and their relative
efficiency in gathering data. However, for certain studies, field experiments are used. For
example, Coca-Cola counts the shelf space it and its competitors receive in local grocery
stores when promotional variables are manipulated. Thus, each type of experimentation
has its role to play in marketing research, but because causality cannot be inferred from
field experiments, laboratory experiments predominate.
▪ See Table 7.7 for a summary of laboratory vs. field experimentation.
● Discuss why nonexperimental designs are limited for inferring cause-effect relationships.
Mention that descriptive studies are sometimes used to infer causality, but this may not
be appropriate. In descriptive studies, prior equivalence of the groups with respect to both
the independent and dependent variables is difficult to establish, as is time order of
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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occurrence of the variables. Finally, it offers little control in eliminating other extraneous
factors.
Chapter Objective 6
● Define and classify test marketing.
Chapter Objective 7
● Examine the difficulties involved with international experiments.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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It is difficult to control for the time order of occurrence of variables and it is difficult to
control for the absence of other possible causal factors, two of the necessary conditions
for causality in an experiment.
o Control of extraneous variables is particularly problematic.
o It may not be possible to address this problem by adopting the most appropriate
experimental design as environmental constraints may make that design
infeasible.
o The internal and external validity of field experiments conducted overseas is
generally lower than it is in the United States.
Chapter Objective 8
● Discuss the ethical responsibilities resulting from disguised experiments.
To complement the Internet, microcomputers and mainframe software can be used in the
design and analysis of experiments. The comprehensive statistical-analysis software
packages SAS and Minitab can be used to design experiments.
ACTIVE RESEARCH
It should be noted that a variety of answers are appropriate. The ones given here are merely
illustrative. DM denotes decision maker and MR denotes marketing researcher.
DM: FTC
To ensure the smooth operation of our free market system, the Federal Trade
Commission (FTC) enforces federal consumer protection laws that prevent fraud,
deception and unfair business practices. The Commission also enforces federal antitrust
laws that prohibit anticompetitive mergers and other business practices that restrict
competition and harm consumers. Whether combating telemarketing fraud, Internet
scams or price-fixing schemes, the FTC’s primary mission is to protect consumers.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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o Information overflow, tough for customers to differentiate noise and useful
information.
o Information flow cannot be controlled or traced. This can lead to
misrepresentation of information, fraud etc.
o Dumping of products especially from foreign countries (web based selling of
drugs by Canadian and Indian companies)
o Increased possibility of collusion between companies
MR: FTC
The conditions necessary to conclude such causality are:
1. Concomitant variation- the information available has increased with increased
consumer use.
2. Time Order- Increased information lags or concurs with increased information
use.
3. Absence of other possible causes
EXPERIENTIAL LEARNING
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1. Students should be encouraged to visit www.bestbuys.com and identify the relevant
information.
2. Students should be encouraged to search the Internet and identify the relevant
information on consumers’ price sensitivity for digital cameras.
3. A factorial design is appropriate. The price of digital cameras could be varied and
consumers’ willingness to buy measured. It would be important to control for income
and digital camera usage.
4. It is likely that the market is segmented with respect to price sensitivity. Different
prices can be charged to the different segments with some differentiation in the
cameras offered.
It should be noted that a variety of answers are appropriate. The ones given here are merely
illustrative.
1. It would be useful to conduct exploratory research in form of secondary data analysis and
focus groups followed by causal research in the form of an experiment.
2. A lot of secondary data about apparel industry is available from online as well as
traditional third party databases. This can be used initially to gather information about the
success of private labels and in-house brands. The focus groups are helpful in gaining
further understanding of the conclusions drawn from the analysis of secondary data,
understanding consumer priorities, perceptions and preferences. The specific causal
design that is recommended is a factorial design. The factor, brand name can be varied at
three levels: Levi’s, Gap, and Arizona. Respondents can be randomly assigned to one of
these brands and asked to express preference for the brand rate its power. Current usage
of these brands should be controlled.
3. The causal design, as specified, will provide a direct relative measure of the power of the
three brands when the mean levels are compared.
1. He should introduce another brand of lower priced jeans and sell Levi’s through discount
stores like Wal-Mart and Target.
2. Pricing appears to be one of the reasons why Levi’s is loosing the battle for market share.
It would be a good idea to launch a cheaper line of jeans to appeal to the cost conscious
market segment. To reach the new target segment, the company would want to increase
advertising spending in targeted marketing efforts. The new line of jeans should be
distributed through different channels than that of the existing high priced segment. This
will ensure the necessary reach.
1. The posttest-only control group design should be used. A sample of respondents would
be selected at random. The sample would be randomly split, with half the subjects
forming the experimental group and the other half constituting the control group. Only
the respondents in the experimental group would be exposed to the TV program
containing the test (Sears) commercial. Then, a questionnaire would be administered to
both groups to obtain posttest measures on attitudes toward the department store (Sears).
The difference in the attitudes of the experimental group and the control group would be
used as a measure of the effectiveness of the test commercial.
2. Only causal designs are truly appropriate for inferring cause-and-effect relationships.
Although descriptive survey data are often used to provide evidence of “causal”
relationships, these studies do not meet all the conditions required for causality. Also,
descriptive research offers little control over other possible causal factors.
Descriptive research constitutes the most popular research design in marketing research,
and we do not want to imply that it should never be used to examine causal relationships.
Indeed, some authors have suggested procedures for drawing causal inferences from
descriptive (nonexperimental) data. However given the limitations of descriptive
research, extreme caution should be exercised when using it for examining causal
relationships.
EXERCISES
Questions
1. There are three requirements or conditions that must be satisfied before a causal
relationship can be inferred. The three conditions are:
(a) Concomitant variation of the two variables.
(b) Time order of occurrence of variables.
(c) Elimination of other possible causal factors.
2. The difference between internal and external validity is that internal validity is concerned
with the question of whether the observed effects on the dependent variable have been
caused by variables other than the treatment, and control of extraneous variables is
necessary for establishing internal validity. External validity, on the other hand, is
01 02 03 04 05 X 06 07 08 09 010
This design is used in cases where the researcher lacks control over the scheduling of the
treatment and the ability to randomly expose test units to the treatment but can control
when measurements are taken and on whom they are taken.
8. A multiple time series design is different from the basic time series in that a multiple time
series design has an additional group of test units added to serve as a control group.
9. The advantages statistical designs have over basic designs are:
(a) In the case of basic designs, the effects of only one independent variable or
treatment can be measured while in case of a statistical design, the effects of more
than one independent variable can be measured.
(b) In the case of statistical designs, specific extraneous variables can be statistically
controlled.
Problems
3. (a) There is a tendency towards concomitant variation in the data, as can be seen in
computing percentages.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
22
Product Use Income
High Medium Low
High 40 20 16
Medium 35 46 24
Low 25 34 60
TOTAL 100 100 100
Role Playing
Q1. You are a marketing research manager for the Coca-Cola Company. The company would
like to determine whether it should increase, decrease, or maintain the current level of
advertising dollars spent on Coke Classic. Design a field experiment to address this issue.
A1. One of several designs can be used for this field experiment. A pretest-posttest control
group design is outlined below:
(a) Select three sets of test markets with similar demographic profiles, competitive
environments and sales volume of Coke Classic.
(b) Randomly increase ad budgets in one set of markets, decrease them in a second
set and maintain them in the third set of markets.
(c) Track sales volumes for three months in each set of markets.
(d) Analyze the sales results to determine differences in performance.
Q2. What potential difficulties do you see in conducting the experiment just described? What
assistance would you require from the Coca-Cola management to overcome these
difficulties?
A2. Potential difficulties include access to sales data, selecting three similar markets to test,
changing competitive dynamics and objections from bottlers in the test market where ad
expenditures will decrease.
Management can assist by ensuring corporate compliance for gathering data, allocating
the necessary funds, pacifying affected bottlers.
Fieldwork
Q1. Select two different perfume advertisements for any brand of perfume. Design and
conduct an experiment to determine which ad is more effective. Use a student sample
with 10 students being exposed to each ad (treatment condition). Develop your own
measures of advertising effectiveness in this context.
Group Discussion
A1. Issues which can be discussed include the role of inference in drawing conclusions, the
difficulty of isolating all possible sources of variation in social science experimentation,
the historic value of experimentation in deriving theories and inferring relationships, and
the nature or definition of science, (i.e., is science only limited to proofs which account
for all sources of variation?).
Note: Answers to the Running Case on Dell are provided in the case solutions
Fig. 12
To Make the Jump the Skier Assumes the Easy Position Required for
Coasting Downhill
For the safety of the skier, the snow should be firm but not icy or
hard, and this is easily done by packing the snow down well by
means of the skis. A good, thick padding of snow is of course
essential, and a thickness of 2 ft. is really needed at the landing
place and at the take-off. In our more northerly sections, plenty of
snow usually falls, but wherever a few sportsmen get together, it is
an easy matter to shovel sufficient snow to prepare a good and safe
jumping hill.
To gain confidence and acquire some useful experience in
jumping, the novice should practice leaping from a 2-ft. rise and
gradually increase the height of the take-off by piling more snow
upon it to increase its height. One or two packing cases firmly placed
upon a smooth, steep hillside, and well padded with 2 ft. of well-
trodden snow, will make a nice take-off. For the beginning the take-
off may point slightly downhill or be fashioned level, and as the skier
becomes more proficient, snow may be added to the edge so that
the take-off will send the jumper well up into the air.
The knack of jumping is nothing more than balancing the body
upon alighting, and the steeper the landing place the easier it is to
keep the balance. To make the jump in good form, the skier assumes
the easy position required for coasting downhill, as shown in Fig. 12.
When within a dozen yards of the take-off the body is lowered until
the skier is in a crouching position with the arms extending back as
in the act of jumping. Arriving within a couple of yards of the dip the
body and arms are thrown forward, which transfers the weight of the
body upon the toes, and the body is straightened up and the arms
are raised not unlike the wings of a bird, to keep the perfect balance
of the body. The straightening up of the body, known to skiers as “the
sats,” is the leap proper and must be timed so that the body
assumes an erect position when the jumper is not less than 12 ft.
from the edge of the take-off. The beginner will invariably jump too
late, but after a little practice, and profiting by numerous mistakes,
the take-off will be timed correctly. Alighting after a jump is best done
by advancing one ski a trifle to keep the balance, and bending the
knees a bit to lessen the impact. The jumper ends with the Telemark
or Christiania swing.
When taking tours of any length on skis, each member of the party
should be provided with a ruck sack of good capacity. That of the
expanding type, made with two outside pockets, and with gores at
the sides, is a good, sensible pack. It should be made of 8-oz.
waterproof khaki and fitted with shoulder straps of good width, to
prevent chafing the shoulders. Leather ruck sacks are sometimes
used, but are heavier in weight and more expensive but no better.
One member of the party should carry some kind of repairing outfit,
consisting of an awl, a length of leather thong, a few spare straps
and a stout cord, or string. These sacks are shown in Fig. 13.
Knife, Fork, and Spoon Holder
The Holder Keeps the Cutlery in a Position for Easy Selection and Grasping
T he sled is built low and wide so that it will not tip easily. The skis, or
runners, are cut 10 ft. long and 6 in. wide, from 1-in. ash boards
that are straight-grained. At the points where the curve is to be
formed, plane off about ¹⁄₄ in. on the upper side, but do not plane off
any at the very tip end. This will allow the skis to be more easily
bent. If it is not handy to steam the skis, put them in boiling water,
and be sure that at least 1¹⁄₂ ft. of the points are covered. Provide a
cover for the vessel, so that only very little steam may escape. Let
them boil for at least one hour. A good method of bending the points
is shown. When the skis are taken from the water, put them as
quickly as possible in the bending blocks, side by side, and bend
them with a slow, even pressure. Weight the extending ends and
leave the skis in the blocks 8 or 10 hours to dry. Sharpen the points
after they are bent.
The Runners are Shaped Like a Ski and are Joined Together with Knees for
the Top Board
The sled will run easier if the skis have a slight rocker curve. To
make this curve, have the center block 6 in. while the two end blocks
are 5¹⁄₂ in. high. A ¹⁄₄-in. flat-head bolt is run through the ski, the
block, and the cross strip. The holes are countersunk in the surface
for the heads of the bolts. The top is made of three 6-in. boards,
fastened to the crosspieces. It is a good plan to brace the tips of the
skis with a 2-in. strip.
Clocks for the Craftsman
The final coil should be wound lengthwise on a wood core, and the
whole packed neatly into the slot. Connect up the ends to the binding
posts, and then glue in a thin piece to hold the coil in place.
By drilling a small horizontal hole through the base, as indicated
by the two dotted lines in the top view of the working drawings, and
inserting a small bar magnet, ¹⁄₈ in. in diameter, or less, the
instrument may be rendered independent of the earth’s magnetism
and used without reference to the north point. Such a controlling
magnet reduces the time required to bring the needle to rest after it
has been violently reflected.
¶Woodwork about a house, when primed with white lead made quite
thin in raw linseed oil, will never blister unless moisture gets back of
it. Yellow-ocher priming will cause blistering at any time up to 20
years.
A Perpetual Calendar
It is Only Necessary to Change the Sliding Pieces to Set the Calendar for
Each Month
¶A column of water 27.6 in. will have a pressure of 1 lb. per square
inch.
Cleaning Tinware with Milk
Some housewives advise a system of dry-cleaning for tinware for
the reason that it insures a surface free from rust which is less liable
to burn. Where washing is preferred, however, a little milk added to
the water proves more satisfactory than either soap or soda, its
peculiarly solvent effect upon grease obviating all necessity for hard
scouring, which latter will wear the tin coating and gradually cause
the article to become useless for holding food and more apt to rust
into holes.—Contributed by J. E. Pouliot, Ottawa, Can.